A Dynamic Bidding Model of Power Markets Based on the Supply Function Approach

This paper presents a dynamic bidding model of power markets based on the supply function approach, which is composed of difference dynamic system and semismooth equations. Comparing with those existing bidding models, the remarkable characteristic of the new one is twofold: it adopts a process of dynamic adjustment bid where the limit point is the Nash equilibrium point; the transmission constraints of the network are considered. A numerical simulation is also presented to test the model´s behaviors with uncogestion and congestion, which includes the computing behavior of the dynamic model; the relationship between the model´s parameters and the stability at the Nash equilibrium point. The simulating results show that the new model is valid